Advanced Series Trust AST Academic Strategies Asset ... - Prudential

Potential Conflicts: Side-by-Side Management of Long-Only and Long-Short Strategies. QMA currently manages long-only and longshort
investment strategies, and has created and implemented a Conflicts of Interest Policy to address potential conflicts that could
arise in the event, for example, one portfolio is purchasing a security at the same time another portfolio is selling the security. The
Conflicts of Interest Policy is designed to identify and prevent a potential cross of a security (buy and sell) between two portfolios
(unless otherwise permitted under applicable procedures and federal securities regulations), and is reasonably designed to ensure that
all accounts are treated fairly.
Other Investments:
The Portfolio may invest in American Depository Receipts (“ADRs”), American Depository Shares (“ADSs”) and other similar receipts
or shares traded in U.S. markets to be U.S. securities. Additional investments may include exchange-traded funds (“ETFs”). The
Portfolio may invest in derivatives, such as futures contracts or equity swaps, for hedging purposes (to seek to reduce risk) and for
non-hedging purposes (to seek to increase return consistent with the Fund’s investment objective).
In addition, the Portfolio may also (1) hold common stock or warrants received as the result of an exchange or tender offer, (2) buy or
sell securities on a forward commitment basis, (3) lend its portfolio securities, (4) invest in options, futures, forwards and equity
swaps, (5) engage in reverse repurchase agreements for investment purposes, (6) borrow money for investment purposes, and (7)
borrow money for temporary or emergency purposes.
AST Schroders Multi-Asset World Strategies Portfolio
Investment Objective: The investment objective of the Portfolio is to seek long-term capital appreciation. This investment objective
is a non-fundamental investment policy of the Portfolio and may be changed by the Board without shareholder approval. No
guarantee can be given that the Portfolio will achieve its investment objective, and the Portfolio may lose money.
Principal Investment Strategies:
The Portfolio seeks long-term capital appreciation through a flexible global asset allocation approach. This asset allocation approach
entails investing in traditional asset classes, such as equity and fixed-income investments, and alternative asset classes, such as
investments in real estate, commodities, currencies, private equity, and absolute return strategies. Absolute return measures the return
that an asset achieves over a certain period of time. Absolute return strategies differ from relative return strategies because they are
concerned with the rate of return of a particular asset and do not compare returns with other measures or benchmarks as with
relative return strategies. The Portfolio is a diversified investment company as defined in the 1940 Act. The Portfolio’s Subadvisers are
Schroder Investment Management North America Inc. (Schroders) and Schroder Investment Management North America Limited
(SIMNA Ltd.). The Subadvisers will seek exposure to the relevant traditional and alternative asset classes by investing the Portfolio’s
assets in varying combinations of (i) securities, including, without limitation, common stocks, preferred stocks, and bonds; (ii) other
pooled investment vehicles, including, without limitation, open-end or closed-end investment companies, exchange-traded funds,
unit investment trusts, domestic or foreign private investment pools (including investment companies not registered under the 1940
Act, such as “hedge funds”) (collectively referred to herein as Underlying Funds); and (iii) certain structured notes and financial and
derivative instruments.
The Subadvisers will seek to emphasize the management of risk and volatility. Generally, the Subadvisers will seek to minimize the
volatility of the Portfolio by:
• Using a wide range of asset classes whose investment performance the Subadvisers believe will not be highly correlated with each
other;
• Employing asset allocation positioning with the aim of providing greater stability of investment performance; and
• Employing derivatives to seek to limit the potential for loss in times of market volatility.
Each asset class will be reviewed on an ongoing basis by the Subadvisers to determine whether it provides the opportunity to
enhance investment performance or to reduce risk. Exposure to different asset classes and investment strategies will vary over time
based upon the Subadvisers’ assessment of changing market, economic, financial, and political factors and events that the
Subadvisers believe may impact the value of the Portfolio’s investments. The Subadvisers will rely on proprietary asset allocation
models to adjust the amount of the Portfolio’s investments in the various asset classes.
The Subadvisers may sell securities when they believe that the underlying assets no longer offer attractive potential future returns
compared to other investment opportunities or that they present undesirable risks, or in order to limit losses on securities that have
declined in value.
Asset Allocation. The approximate allocations of the Portfolio across asset classes as of January 31, 2010 is set forth in the table
below. Subject to then-current market, economic, and financial conditions, the Subadvisers expect that the assets of the Portfolio will
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